The stock of EID Parry India jumped 5.8 per cent accompanied by above average volume on Wednesday, breaching above a key resistance at ₹210. This up-move provides short-term perspective investors an opportunity to buy the stock at current levels.

After a short-term downtrend in September 2018, the stock found support recording a 52-week low at ₹177 in early October. Subsequently, the stock reversed direction triggered by positive divergence in the weekly relative strength index and price rate of change indicator. Moreover, the stock had formed a bullish engulfing candlestick pattern at the key support levels which is also a bullish reversal pattern.

The stock has gained 11 per cent so far this week and has potential to extend its current gains in the near term. The daily RSI is on the brink of entering the bullish zone from the neutral region and the weekly RSI features in the neutral region. Also, the daily price rate of change indicator features in the positive territory implying buying interest.

The short-term outlook is bullish for the stock. Targets are ₹232 and ₹236. Traders can buy the stock with a stop-loss at ₹218.

(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)

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